Forgive me, slightly off topic – The seizure of Icelandic assets by the UK, is this the first time that the UK has done this to a friendly power?

Do you think that this has long term ramifications for the City of London as a financial centre?

Obviously the above action won’t hurt gold and IMHO accelerate the shift of financial action from London to Dubai.

Peter:

Just a short note to let you know that I thoroughly enjoy your web site, and your perspectives on the global financial crisis.

At this point in the movie, many of us are wondering when we’ll reach that point of Total Capitulation. I believe that we’ve still got quite a way to go.

Richard
aka: obewon86

I have never witnessed so much bare-faced corruption as is happening on COMEX, right now.

It seems the culprit is J P Morgan/GS, and their hedgy friends. – Fed financed.

Preservation of a corrupt fiat system that inflates away (steals) all savings, all pensions, within a generation, for the benefit of the Masters.

Toxic paper (Lehman today) is what screwed Iceland, and is now screwing the world.

Hanging, Drawing, and Quartering is not painful enough for these criminals.

The entire human civilisation will suffer because of their greed.

A FIAT financial system that issues DEBT, and charges interest on it MUST implode every hundred years or so, it is a mathematical certainty.
The interest rates have been brought down to try to throw more debt into the flames. This is one of the mathematical flexion points where injections of Credit (DEBT) become more and more inefficient as the DEBT based system unwinds.

The system commences with the fractional reserve lending out of deposited SAVINGS.
As the compounding of interest rates progresses, it becomes impossible for the system to grow, so DEBT is issued, at an increasing rate as more and more leverage is added, as the rate of growth in GDP per Dollar injected, becomes less and less.

Eventually Debt saturation is reached, where borrowing more is uneconomical, so fraud is perpetrated on a grand scale (eg Mortgages for all)in order to keep the sheep borrowing.

Even this has its limits.
This is where we are now.
It must all unwind.
That is painful.

The G-20 in NY today must reject Paulsons plans in their entirety. He does not plan to unwind, but to increase the power grab by the FED, JPM, and GS.

Throwing more DEBT at a DEBT soaked planet will not cure anything. Refinancing the Banks, who are the masters of fraud, at tax payer/currency expense, will not work.

Paulson is a tool of the powers behind the Fed, and does not exist to serve any other masters. His objective is a One World Order, with bankers at the helm, and the global population in perpetual abject servitude.

Bailouts will not work, they seek to preserve the Status Quo, engineered by Greenspan, Paulson, fool Bernanke, and the FED players.

Russia, China, India, Brazil, etc, must all resist his plans.

These are not “Tin Foil Hat” thoughts.

These are facts if you bother to research.

Yes I think you are right but there are much bigger issues now and it is all part of the same process. This will greatly accelerate the shift from the City to Dubai and Asia but this is unlikely to be a smooth process -gold’s future is assured by the trillions of dollars going into the bailouts globally, but again this will not be a road without a few bumps. Bumps can be fatal for those on margin, i.e. with borrowings or part-paid property who do not have the resources to see their investments through.

In answer to 2. – so you basically want a repeat of the 30s, the rise of the nazi party (in China perhaps), World War III, etc – I am afraid the evil of two lessers has to be chosen and what you say is completely wrong.

We will have a period of stagflation and the axis of the world economy will shift east – this will be quite painful enough but the destruction you propose is utterly irresponsible. I think you might be a troubled person looking to take the whole world down with him. That is the whole problem with what you propose – you will take the whole world down to a new level, an even more self-destructive one of anarchy and chaos.

You do not cure a fat man by starving him to death – a proper diet is the answer but if somebody has stopped eating (taking credit) then a bit of force feeding might be necessary. Of course, letting him die will cure his problem too.

Dear Friends,

Stay the course or jump directly into the fire! That’s the soundest advice I can give you in this highly volatile market period. I told you that you would see volatility in gold beyond your wildest imagination. That statement usually went along with my warning that by margining anything gold you were putting yourself in great financial risk.

Today has to seal the veracity of that advice. Now get a hold of yourself. There is absolutely no way governments can make a problem of this size go away over a weekend. Those that question me on this issue are the same ones that laughed in 2000 when I said the growth of OTC derivatives was going to break the world. I told the lead director of Bear Stearns at the time that OTC derivatives were going to break his firm but the profits from them was simply too intoxicating for anyone to listen. Now I am asking you to listen.

Whatever is done to resolve this global financial crisis is going to inject incomprehensible amounts of new money into the global financial system.

Academics see the world as a ‘Picture In Time.” That means they are static thinkers who can’t perceive motion. Visionaries like Harry, Monty, Trader Dan & Tony are “Dynamic Thinkers.” At present, some academics are promoting the dumbest line I have ever heard. They say that all this new money going into the system is not monetary inflation because it is simply replacing all the money lost and therefore is a wash. That is part of the thinking pattern I am talking about and it’s dead wrong.

Dynamic thinkers know that the outflow of these losses has existed from the time of transaction and therefore prior to truer valuation as mandated by Financial Accounting Standards Board (FASB).

The day the FASB mandated truer value had existed for years but was not recognized as such because it was generally accounted for off balance sheet. Just because financial institutions tried to hide their losses, those capital depletions were already a growing cancer inside their organizations.

You can be certain that a repetition of Germany’s Weimar crisis is coming soon. There is nothing that can be done to make matters better – even if done by governments unilaterally in a unified action. In fact, such action will only serve to make matters worse.

The larger the financial action, the deeper the financial fall. The G7 still thinks they run the world. That should tell you something about the degree of what they can do.

Gold is honest money that will push all crappy paper out of its way. Why do you think so much intervention took place in gold in US market hours today?

All I can tell you is to stay the course or jump directly into the fire! If the heat in the kitchen is too hot for you, there is nothing I can do for you.

Regards,
Jim Sinclair

This will greatly accelerate the shift from the City to Dubai and Asia but this is unlikely to be a smooth process

To be sure!

I note an increasing number of western banks setting up offices in the ME and SEA.

What the host nations must ensure is they do not open their financial markets too easily to western, particularly wall street entities, or they will suffer repeated booms and busts, all engineered in advance, with massive capital flight that destroys the economy/currency of the host, and then the return of the funds to buy assets at cents on the dollar.
This pattern has been used so many times in the past, it is well perfected.

The hosts must be VERY WARY.

The engines of global inflation are the Yen carry trade facilitated by 0.5% Japanese interest rates, to hedgies in Caribbean Islands, London, Iceland, etc, and the Fed and its hedgies, and primary dealers.

These MUST be legislated away before any global normalcy can return.

Similarly Basle 11 that allows massive gearing for European Banks should be legislated away.
8 to 1 maximum.

Credit default swaps that deliberately and criminally avoided existing insurance legislation, invented and pushed massively by GS and JPM (still standing because they are toy-boys of the Fed and massive political donors to both parties) are the cause of current blow-ups.
Outlaw them, or regulate them as insurances.

Independent, FOR PROFIT, private banks must NOT have control of even paper clips, let alone the issuance of currency and control of the economy of the host nation.

The spawn of Red Shield, and all the copy-cats are financial terrorists and should be treated as such, under terrorism legislation.

(Sigh)

And the chances of all that happening?
(cough)
…………………?

I believe the only way to beat them from their open and unadulterated manipulation of the Gold price is a grass roots campaign to short JP/GS into oblivion. Maybe even better – we ALL pull out of the stock market at the same time! This would have to be on a massive scale the likes that has never been seen. We need the entire worlds investor populace to drive them out of business. Paulson’s good ol boy buddy system needs to be broken in half and its carcass left for the vultures!!!

Everyone needs to remember something. You DON’T need stocks. You could live your entire life and not buy a single stock and you would survive. Try going your entire life without Food (commodities). The only way is to break the system is to be out of their game!

Did everyone see what happened with Gold Friday!!! What a JOKE! Comex is a Joke. http://www.jsmineset.com/cwsimages/Miscfiles/6636_October1008Gold1230pmCDT.pdf

If you really want to learn about manipulation, and criminality at all levels go here;-

http://www.financialsense.com/fsn/main.html

And click on “Bud Burrell”

Keep an oxygen tank near by!!

In the final minutes some websites are given out that track this obscenity.